Germany's Industrial Stability At Risk: 1.4 Trillion Euros Needed For Investment, Warns BDI Report
Date
9/13/2024 3:12:21 PM
(MENAFN- AzerNews)
Nazrin Abdul
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The Polish portal "Filary Business" reports that Germany's
industry-based Economy is facing significant challenges that could
jeopardize its stability and competitiveness,
Azernews reports.
According to a recent report by the Association of German
Industry (BDI), Germany will need approximately 1.4 trillion euros
in additional investment by 2030 to stay competitive
internationally and sustain its industrial position.
BDI CEO Siegfried Russwurm described the report as a critical
alert for urgent reforms. He warned that the risk of
deindustrialization in Germany is rising, with up to 20 percent of
the country's industry already at risk.
German companies are grappling with major issues including high
energy prices, a shortage of skilled workers, excessive
bureaucracy, insufficient investment, and high taxes. These
problems are undermining the competitiveness of German firms,
potentially leading to increased outsourcing of production.
The lack of investment over the past 30 years has also caused
significant declines in crucial economic sectors such as digital
infrastructure, education, and transport. For instance, Germany
still lacks a well-developed fiber-optic network essential for
future technological advancement.
The COVID-19 pandemic and the ongoing Russia-Ukraine conflict
have exacerbated the difficulties faced by Germany's traditionally
export-oriented industry.
Experts caution that while Germany remains a leader in European
industry, without necessary reforms, it risks industrial migration
abroad and further deindustrialization.
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